A month ago, the answer to this question was yes. In the past two weeks, however, this answer has changed. Recent data and visitor feedback suggests that people who opt to transfer balances online may decrease their odds of getting approved. Additionally, with many credit card companies, there is a pretty large financial incentive to wait until your credit card arrives in the mail before transferring balances.
We’ll start with the monetary reason. Most credit card companies are now offering a 0% APR on balance transfers for up to 1 year. The key phrase here is, “up to.” Applicants with excellent credit will receive a 0% APR for a full year in most instances. However, these credit cards may approve an applicant, but only grant a 0% APR for as little as 3 months.
Now, if you were to transfer your balance online to one of these credit cards and only get a 0% APR for 6 months, you’ll not only be paying interest 6 months sooner than you expected, you’ll also be paying a 3% fee. This combination can wipe out much of the savings 0% balance transfers provide.
To avoid a scenario such as this, consider applying online and then transferring your balance when your credit card arrives in the mail and you can review the full details of your offer. No credit card company provides upfront information on interest rates, 0% terms, or credit limits until they have reviewed your application. Thus, the best option for consumers is to play it safe and wait. If you end up with a credit card that only offers a 0% APR for 3 or 6 months, apply for another card from a different company to see if you get a better offer.
The second issue that had popped up this month is lower approval rates on applications submitted by visitors of Smart Balance Transfers. This has been particularly apparent with the Discover More Card, the most popular offer on the site and one of the few remaining credit cards that actually delivers on a 0% APR for a full year to approved applicants.
While we do not know the exact reasons for this decline, one possibility could be the reluctance of lenders to accept applicants who desire balance transfers. However, by simply applying online and calling in to transfer your balance, you may improve your odds of getting approved.
The important thing, however, is to be extremely careful about transferring balances online to credit cards that offer a 0% APR on balance transfers for up to 1 year. Its much better to find out that your interest rate only lasts 6 months before you’ve paid balance transfer fees than it is afterwards.
For additional information and to compare 0% APR balance transfers, please visit the main section of Smart Balance Transfers.
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